Required information

$[$The following information applies to the questions displayed below.$]$

Julio and Milania are owners of Falcons Corporation, an S corporation. Each owns $50$ percent of

Falcons Corporation. In year $1,$ Julio and Milania each received distributions of $$14,000$ from Falcons

Corporation.

a$.$ What amount of ordinary income and separately stated items are allocated to them for year $1$ based on the

information above? Assume that Falcons Corporation has $$220,000$ of qualified property $($unadjusted basis$).$

Answer is complete but not entirely correct. Required information $[$The following information applies to the questions displayed below.$]$ Megamart provides the following information on its two investment centers. $[[$Investment Center,Sales,Income,Average Assets$],[$Electronics$,40,000,000,2,880,000,16,000,000$ Required information $[$The following information applies to the questions displayed below.$]$ Megamart provides the following information on its two investment centers. $[[$Investment Center,Sales,Income,Average Assets$],[$Electronics$,40,000,000,2,880,000,16,000,000$